💥UPSC 2027,2028 Mentorship (April Batch) + Access XFactor Notes & Microthemes PDF

Search results for: “”

  • [Sansad TV] Perspective: 70 Years of India-Japan Relations

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

    Context

    • India and Japan are celebrating 70th anniversary of the establishment of diplomatic relations between the two nations.
    • This seven decade long journey has witnessed significant milestones and shared visions for the future.

    The recent visit to India by Japanese PM Fumio Kishida for the annual summit laid out a roadmap for deepening the Special Strategic and Global Partnership between the two countries in a post-COVID world.

    Background of India-Japan Ties

    [I] Ancient times

    • The friendship between India and Japan has a long history rooted in spiritual affinity and strong cultural and civilization ties dating back to the visit of Indian monk Bodhisena in 752 AD.
    • The people of India and Japan have engaged in cultural exchanges, primarily as a result of Buddhism, which spread indirectly from India to Japan, via China and Korea.

    [II] India’s freedom movement

    • Independence movement: The leader of the Indian Independence Movement, Rash Behari Bose was instrumental in forging India–Japan relations during India’s independence movement.
    • During World War II, The British occupiers of India and Japan were enemies during World War II.  Subhas Chandra Bose used Japanese sponsorship to form the Azad Hind Fauj or Indian National Army (INA).

    [III] Present times

    • Pokhran nuclear test: In 1998, Japan imposed sanctions on India following the Pokhran-II, an Indian nuclear weapons test, which included the suspension of all political exchanges and the cutting off of economic assistance. These sanctions were lifted three years later.
    • Both nations share core values of democracy, peace, the rule of law, tolerance, and respect for the environment in realising pluralistic and inclusive growth of the region

    Post-cold war relations

    • The end of cold war and the collapse of the Soviet Union, and the inauguration of economic reforms in India seemed to mark the beginning of a new era in Indo-Japanese relationship.
    • India’s “Look East Policy” posited Japan as a key partner.
    • Japan being the only victim of nuclear holocaust, Pokhran –II tests of India in May 1998 brought bitterness in the bilateral relations where Japan asked India to sign NNPT.
    • Tokyo’s relation with India showed signs of an upswing when Prime Minister Yoshiro Mori came on an official 5 day visit to India in August 2000.

    Recent developments in India-Japan Relationship

     (1) 2+2 Ministerial Dialogue

    • The 2+2 ministerial dialogue is seen as an upgrade of the meeting between foreign and defense secretaries of the two countries, the first round of which took place in 2010.
    • The ministerial level meeting was held after a decision to institute a Foreign and Defense Ministerial Dialogue was taken during the 13th India-Japan Annual Summit held in Japan in 2018.
    • 2+2 meeting aimed to give further momentum to their special strategic partnership, particularly in the maritime domain.

    (2) Supply Chain Resilience Initiative

    • Recently India, Australia and Japan formally launched the Supply Chain Resilience Initiative. The initiative was launched to counter the dominance of China in the Global Supply Chain.
    • It aims to prevent disruptions in the supply chain as seen during COVID-19 pandemic.
    • The initiative will mainly focus on diversification of investment and digital technology adoption.

    (3) Other MEA led-bilateral dialogues

    • The Act East Forum, established in 2017, aims to provide a platform for India-Japan collaboration under the rubric of India’s “Act East Policy” and Japan’s “Free and Open Indo-Pacific Vision”.
    • At the Second meeting of the Act East forum, both sides agreed to focus on expanding of Japanese language in North East, training of caregivers under Technical Intern Training Program (TITP), capacity building in area of bamboo value chain development and Disaster Management.
    • The inaugural India-Japan Space Dialogue was held in Delhi for enhancing bilateral cooperation in outer space and information exchange on the respective space policies.

    (4) Currency Swap Agreement

    • Japan and India have entered into a $75-billion currency swap arrangement that will bolster the country’s firepower as it battles a steep drop in the rupee’s value.
    • A currency swap is an agreement between two parties to exchange a series of cash flows denominated in one currency for those denominated in another for a predetermined period of time.
    • The deal will help the two countries to swap their currencies for U.S. dollars to stabilise the rupee which has witnessed the steepest fall in recent years.

    Areas of Cooperation

    (1) Economic and Commercial relations

    • India’s bilateral trade with Japan stood at US$ 16.95 billion in FY 2019-20. India’s imports during this period were US$ 12.43 billion and exports were US$ 4.52 billion.
    • From 2000 until September 2020, the Japanese investments in India cumulatively stands at around US$ 34.152 billion (Japan ranks fifth among the largest source of investment).
    • The Mumbai-Ahmedabad High Speed Rail, Western Dedicated Freight Corridor (DFC), Delhi-Mumbai Industrial Corridor (DMIC) with twelve industrial townships, Chennai-Bengaluru Industrial Corridor (CBIC) are some mega project with Japanese cooperation on the anvil.

    (2) Security and Defence

    • QUAD: Formed in 2007 and revived in 2017 The Quadrilateral Security Dialogue (QSD, also known as the Quad) is an informal strategic dialogue between the United States, Japan, Australia and India.
    • Exercise Malabar: The dialogue was paralleled by joint military exercises of an unprecedented scale, titled Exercise Malabar.
    • In spite of the pandemic, complex exercises in all domains were conducted including Japan India maritime exercise (JIMEX 2020) and PASSEX, showcasing the trust and interoperability between the navies.

    (3) Strategic

    • 2+2 dialogue: It is taking place between the foreign and defence ministers of the two countries to deepen the global partnership.
    • Collaboration with the US: It is also agreed to establish the India–Japan–United States trilateral dialogue on regional and global issues of shared interest.
    • Global institutional reforms: Both countries also reiterated their determination to work together under the UNFCCC, WTO, etc. They are working together to realize the reform of UNSC Security Council at the earliest.
    • Indo-Pacific: There is a beginning of India-Japan-Australia trilateral dialogue to evolve an open, inclusive, stable and transparent economic, political and security architecture in the indo-pacific region.

    (4) Others

    • Disaster management: An Agreement on joint research in the field of Earthquake Disaster Prevention was signed between Fujita Corporation and Indian Institute of Technology, Roorkee (IIT-R).
    • Skilling and HRD: India-Japan MoC signed in 2016 to train 30,000 shop floor leaders over 10 years thereby also contributing to India’s flagship initiatives such as “Skill India” and “Make in India”.
    • Health-care: In view of the similarities and synergies between the goals and objectives of India’s AYUSHMAN Bharat Programme and Japan’s AHWIN, both sides consulted with each other to identify projects to build the narrative of AHWIN for AYUSHMAN Bharat.
    • Nuclear Energy: In 2015, India and Japan reached on substantive Agreement on Cooperation in the Peaceful Uses of Nuclear Energy. India becomes the first non NPT signed country to do so.

    What lies at the fulcrum of ties?

    • Japan is the most mature economy: In terms of maturity, sophistication, and experience in international economic engagements, Japan excels every other country of the Indo-Pacific region, excluding the US.
    • Technological development: Its technological marvels, business strategies, and management skills are second to none.
    • Political neutrality: Japan rarely hits the international headlines and it is actually Japan’s feebleness in the world of political advertisements.
    • Key player in Indo-Pacific: Japan sooner than later will be a leading player in the political economy as well as security fields of the Indo-Pacific region.

    Why Japan needs India?

    • Worrisome ageing population: Its aging population is a major concern and Japan very well acknowledges this fact. While increasing the domestic birth rate will always be important, it is a position to devise a new immigration policy that would largely benefit Indians.
    • Japan has never been an adversary of India: The current global as well as regional distribution of power and strategic scenario necessitate a deeper and expansive Indo-Japan strategic teamwork.
    • India as a net security provider: The US and Japan need India as a stabilising force. India has the potential as a security provider in Southeast Asia for geo-strategic reasons.
    • India’s naval assets: India possesses enough naval capability to be projected as a strong naval power in the future.  
    • Filling strategic vacuum: India can only fill the power vacuum created due to the declining US power. Japan and ASEAN alone do not have enough power to fill the power vacuum.

    Why India needs Japan?

    For India, developing a strategic relationship with other Asia-Pacific powers such as Japan might appear to be a no-brainer.

    • US needs Japan – India cooperation: The US needs an “ally” to maintain military balance in Asia because their naval power is declining and China’s naval power is rising.
    • Countering China: China has been expanding and intensifying its activities in its surrounding waters. This has caused a worry in Japan.
    • Uniting the IndoPacific: The Indo-pacific is not an integrated region. Most countries have been expanding while others are falling prey to China.
    • Infrastructure development: Japan has the distinction of being the only foreign power that has been allowed to undertake infrastructure and other projects in India’s sensitive northeast.

    Limitations to bilateral ties

    • Geographical limitations: The two countries are too far apart to be meaningful partners in any confrontation between one of them and China.
    • China is too big to defeat: No partnership have the military muscle or diplomatic heft to achieve its objectives in countering China.
    • Lesser say at UNSC: At the diplomatic level, neither pulls the kind of power that can counter Beijing and this is not just because they are not UNSC members, unlike China.
    • Japan lacks military technology: Japan obviously has a very advanced high-technology industrial sector, its military industry is insignificant. It’s better not to invoke the DRDO.

    Way forward

    • People to people contact: Although the Covid-19 situation remains challenging, people-to-people exchanges between two countries are also being advanced.
    • Cooperation in security: Cooperation has also taken great strides in the area of security, including joint exercises between the Japan Self-Defence Forces and the Indian Armed Forces.
    • Reaping the benefits of natural alliance: Taking advantage of its considerable assets — the world’s third-largest economy, substantial high-tech skills, Japan is largely perceived as a natural ally to India.
    • Looking East: If Japan and India continue to add concrete security content to their relationship, their strategic partnership could potentially be a game-changer in Asia.
  • [Yojana Archive] Fintech Beyond Boundaries

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

    April 2022

    Context

    FinTech is rapidly changing the face of the banking industry, as several banks are now switching to digitization as well as paperless and cashless processes.

    Fintech in India: A backgrounder

    • With the establishment of two institutions in 2009, India’s fintech journey began.
    • The National Payments Corporation of India was the first to take over ATM networks in India in order to modernize retail payments and settlements.
    • The second step was the establishment of India’s Unique Identification Authority.

    What are fintechs?

    • Fintech, the word, is a combination of “financial technology”. 
    • Financial technology (Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services. ​​​
    • At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms.

    Key fintech products

    • Digital Public Infrastructure (DPI): DPI refers to digital solutions that enable basic functions such as collaboration, commerce, and governance, which are critical for public and private service delivery.
    • Digital Public Goods (DPGs): DPGs refer to open source software, open data, open AI models, open standards, and open content that adhere to privacy and other applicable best practices.  They’re an important tool for constructing infrastructure in ways that avoid some of the drawbacks of proprietary software-based solutions.

    Why in news?

    • India is one of the largest and fastest-growing markets in the world with more than 2100 fintechs.
    • It has the third largest fintech ecosystem in line after the US and China.
    • As of December 2021, India has over 17 fintech companies which have gained Unicorn status with a valuation of over USD 1 billion.

    FinTech industry in India: A closer look

    • Banks have conventionally served as the gateway to payment services in India.
    • However, with the rapid advancement of technology, this no longer appears to be the case, as the monopoly of banks in this area is gradually weakening.
    • In recent years, India’s payments infrastructure has seen substantial improvements, particularly with the introduction of new payment mechanisms and interfaces such as Immediate Payments Service (IMPS), Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), and others.
    • The government’s “Make in India” and “Digital India” projects also played a significant role in accelerating the adoption of Fintech.
    • It is commendable that the Reserve Bank of India (RBI) has also pushed the growing use of electronic payments to establish a truly cashless society in recent years.

    Key initiatives: India Stack

    • The India Stack is a set of APIs that allow the government and private sector to deploy cashless and paperless technology.
    • Although the owners of these APIs are responsible for their upkeep, the India Stack encourages developers to use them by hosting events.

    Components of the India Stack

    • Unique Identification Number: The UIDAI makes up the India Stack, also known as the Aadhaar Stack. This is the individual’s unique identification number, which is linked to their biometric readings.
    • E-KYC: The e-KYC project allows businesses to obtain instant customer verification.
    • AEPS: AEPS expands financial inclusion by allowing government entitlements and bank-to-bank transfers to be disbursed at retail outlets that can go cashless.
    • UPI: A payment request and a customer can use the Unified Payment Interface to send funds to a beneficiary and collect payment requests from customers.
    • E-Sign: eSign is enabled through an API that facilitates an Aadhaar cardholder to electronically sign documents. This is authenticated through biometric readings and through an OTP.
    • DigiLocker: DigiLocker is used as a Government of India repository for documents.
    • Digital Signature: Digital Signature provides the capability that allows individuals to electronically sign contracts with any entity without a pen or paper.

    FSCA – The Governing Body

    • The IFSCA was established under the International Financial Services Centres Authority Act of 2019.
    • In India, the IFSCA is the single body in charge of the creation and regulation of financial goods, financial services, and financial institutions.
    • India’s first international financial services centre is the GIFT IFSC.
    • IFSC serves as a unified authority for the development and regulation of financial products, financial services, and financial institutions.

    Data and standards

    • People and small businesses can now retrieve and use their data thanks to digitised infrastructure.
    • To make this open-banking system work, a standard language will be needed, similar to how UPI created a payment protocol.
    • The National Payments Corporation of India (NPCI) is launching an Open Credit Enablement Network (OCEN) to connect lenders and marketplaces.

    Challenges to FinTech in India

    • Despite being a vastly diversified and populated country, a huge portion of India remains underbanked, underserved and subject to a constantly changing regulatory environment.
    • And for these very reasons, the nation’s financial landscape and unsolved challenges are no easy hurdles to overcome.
    • This is where Fintech enters the equation, with its ability and power to fundamentally alter and transform India’s financial and banking services sector.

    Conclusion

    • FinTech companies’ growing partnerships with traditional banking, insurance, and retail sectors, where they are actively catering to evolving customer needs, will further accelerate FinTech’s expansion in India.
    • All these factors indicate a positive shift towards FinTech and present a huge growth potential for the industry, with the country gearing towards massive adoption.
  • India-Denmark relations

    Context

    As Russia, isolated by unprecedented Western sanctions, deepens its alliance with China, Europe has begun to loom larger than ever before in India’s strategic calculus. Prime Minister Narendra Modi’s visit to Berlin, Copenhagen, and Paris this week could give us a glimpse of India’s post-Russian strategic future in Europe.

    Engagement with collective Europe

    • In her visit to Delhi, the president of the European Commission, Ursula von Der Leyn, unveiled the new contours of the EU’s strategic partnership with India by launching the India-Europe Trade and Technology Council. 
    • This week, the focus is on India’s key bilateral partnerships with European majors — Germany and France — as well as a critical northern corner of Europe, the so-called Norden.
    • Having built up a significant engagement with Moscow over the decades, India and Germany are under pressure to disentangle from the Russian connection.
    • Modi and Scholz could also exchange notes on how their long-standing illusions about China came crashing down.
    • Macron’s return to power in France offers a good moment for Modi to imagine the next phase in bilateral relations.
    • For some time now it has been said that France is India’s “new Russia” — Delhi’s most important strategic partner.
    • In recent years, France has emerged as a strong defender of India’s interests in the United Nations Security Council and a regional ally in the vast Indo-Pacific theatre.
    • France has also been a major supplier of advanced arms to India.
    • But Delhi and Paris have been some distance away from demonstrating full possibilities of their defence partnership.
    • There is no doubt that Western Europe has moved from the margins to the centre of India’s foreign and security policies.
    • The crisis in Ukraine, which has shattered the regional order that emerged in 1991, intensifies the imperatives for deeper strategic cooperation between India and its European partners.

    India’s engagement with smaller European countries

    • In Copenhagen, the bilateral talks with Danish leadership are about Delhi finally finding time for the smaller European countries.
    • The Nordic summit hosted by Denmark underlines India’s discovery of the various sub-regions of Europe — from the Baltics to the Balkans and from Iberia to Mittleuropa.
    • The Nordic Five — Denmark, Finland, Iceland, Norway, and Sweden — have a population of barely 25 million but their GDP at $1.8 trillion is greater than that of Russia.
    • Two members of the Nordic five — Sweden and Finland — are now rushing to end their long-standing neutral status and join NATO.
    • The other three — Denmark, Iceland, and Norway — have been founding members of NATO, set up in 1949.
    • Listening to the Nordic leaders might help Delhi appreciate the deeply-held fears about Russia among Moscow’s smaller neighbours.
    • In Copenhagen, Modi would want to build on the unique bilateral green strategic partnership with Denmark.

    Germany and India’s engagement with Russia

    • Berlin is tied far more deeply to Russia than India.
    • Germany’s annual trade with Russia is about $60 billion while India’s is at $10 bn.
    • Germany relies heavily on Russian natural gas, while Russian arms dominate India’s weaponry.
    • Irrespective of their Russian preferences, Germany and India have no option but to live with circumstances over which they have no control.
    • Opportunity for India: Making India an attractive new destination for German capital, now under pressure to reduce its exposure to Russian and Chinese markets, should be the highest priority for PM Modi.
    • Germany is one of India’s oldest economic partners, but the full potential of the commercial relationship has never been realised.
    • If there ever was a moment to think big about the future of German trade and investment in India, it is now.

    Conclusion

    A new paradigm is beckoning India — strong commercial and security partnerships with Europe that stand on their own merit and bring the many synergies between them into active play.

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

  • The supply bottlenecks causing power shortages

    Context

    The power sector in India is going through a crisis. Peak shortages in some states have reached double digits.

    Chronology of the crisis

    • First, with summer approaching before time, power demand has shot up to record levels.
    • The second reason for the rise in power demand is that the economy is recovering, and demand from the industrial sector is going up.
    • All things put together, power demand crossed 207 GW on April 29, which is about 14 per cent higher than what it was a year ago.
    • Experts feel that the peak demand may even touch 215 GW in the coming months.

    Coal shortage crisis

    • On average, coal stocks available are only good enough for about eight days’ generation against a norm of 24 days.
    • In some plants, the stocks available are just about enough to run the plant for a day or two more.
    • Part of the problem of poor coal stock is also rumoured to be on account of the non-payment of dues of coal companies.
    • But this is not the major cause of the shortage.

    Reasons for coal shortage and fall in generation

    • The fall in coal stock in power stations is because of two main reasons.
    • 1] Rise in international price of coal: The first is that due to a rise in the international price of coal on account of the Ukraine crisis, all plants that were importing coal have either stopped generating completely or are generating at much lower levels.
    • We have a sizeable generating capacity based on imported coal, estimated at about 16 GW to 17 GW.
    • All these plants after stopping imports are now looking for domestic coal, creating pressure on domestic coal.
    • 2] Non-availability of rakes with Indian railways for transporting coal: Though about 22 MT of coal may be available in power stations, if one includes the stocks available with mining companies, the figure is well over 70 MT.
    • So, it is all a question of transporting the coal to the power stations.
    • 3] Fall in generation from gas-based plants: To make matters worse, generation from gas-based plants has also fallen due to high gas prices in the world market.
    • 4] Impact on hydro generation: Reservoirs, too, are drying up due to intense heat which will adversely affect hydro generation.

    Transportation problem faced by Indian railways

    • The railways have about 2,500 rakes which can be used for coal transportation.
    • With a turn-around time of about four-and-a-half days which goes up to nine days for coastal regions, the railways can provide only about 525 rakes on any single day. 
    • Of this, about 100 rakes are used for transporting imported coal and therefore, only about 425 rakes are available on a daily basis for transporting domestic coal.
    • But only 380 rakes were being provided in the first half of April this year, though efforts are on to increase this to about 415 rakes.
    • The railways prefer to transport coal over short distances in order to save on the turn-around time.
    • There is also the issue of availability of tracks since they are being used on a back-to-back basis.
    • Thus production has to be enhanced so that the replenishment rate is higher than consumption.
    • Unless we do that, the total stock of coal in the country will deplete further and it will no longer be a mere transportation problem as it is now, but a general lack of supply of coal.

    Conclusion

    This is the right time to enhance coal production and build adequate stocks because once the monsoon sets in, production will fall.

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

  • The Debate on National Language

    Remarks by a Hindi actor to the effect that Hindi is the national language of India has sparked controversy recently over the status of the language under the Constitution.

    What is the status of Hindi?

    • Under Article 343 of the Constitution, the official language of the Union shall be Hindi in Devanagari script.
    • The international form of Indian numerals will be used for official purposes.

    The debate

    • Inherent opposition to Hindi: The Constituent Assembly was bitterly divided on the question, with members from States that did not speak Hindi initially opposing the declaration of Hindi as a national language.
    • Colonial footprints of English: Proponents of Hindi were insistent that English was the language of enslavement and that it should be eliminated as early as possible.
    • Fear of Hindi imposition: Opponents were against English being done away with, fearing that it may lead to Hindi domination in regions that did not speak the language.
    • Inefficacy of Sanskrit: There were demands to make Sanskrit the official language, while some argued in favour of ‘Hindustani’.
    • Issue over Script: There were differences of opinion over the script too. When opinion veered towards accepting Hindi, proponents of the language wanted the ‘Devanagari’ script to be adopted both for words and numerals.

    Major outcome: No national language

    • It was decided that the Constitution will only speak of an ‘official language’.
    • And that English would continue to be used for a period of 15 years.
    • The Constitution said that after 15 years, Parliament may by law decide on the use of English and the use of the Devanagari form of numbers for specified purposes.

    What is the Eighth Schedule?

    • The Eighth Schedule contains a list of languages in the country. Initially, there were 14 languages in the schedule, but now there are 22 languages.
    • There is no description of the sort of languages that are included or will be included in the Eighth Schedule.

    Constitutional position of Eighth Schedule

    There are only two references to these languages in the text of the Constitution.

    (i) Article 344(1):

    • It provides for the formation of a Commission by the President, which should have a Chairman and members representing these scheduled languages.
    • The purpose of the Commission is to make recommendations for the progressive use of Hindi for official purposes of the Union and for restricting the use of English.

    (ii) Article 351:

    • It says it is the Union government’s duty to promote the spread of Hindi so that it becomes “a medium of expression for all elements of the composite culture of India”.
    • It also aims to assimilate elements of forms and expressions from Hindustani and languages listed in the Eighth Schedule.

    What were the 1965 protests about?

    • The Official Languages Act, 1963 was passed in anticipation of the expiry of the 15-year period during which the Constitution originally allowed the use of English for official purposes.
    • Its operative section provided for the continuing use of English, notwithstanding the expiry of the 15-year period.
    • Jawaharlal Nehru had given an assurance in 1959 that English would remain in official use and as the language of communication between the Centre and the States.
    • The Official Languages Act, 1963, did not explicitly incorporate this assurance, causing apprehensions in some States as the January 1965 deadline neared.
    • At that time, PM Lal Bahadur Shastri reiterated the government’s commitment to move towards making Hindi the official language for all purposes.

    TN loops in the agitation

    • In Tamil Nadu, then known as Madras, the prospect of the use of Hindi as the medium of examination came due to recruitment examination of union.
    • It created an apprehension that Hindi would be imposed in such a way that the future employment prospects of those who do not speak Hindi will be bleak.

    Creating an exception for Tamil Nadu

    • With the Congress government in the State taking the view that the people had nothing to fear about, protests broke out in January 1965.
    • It took a violent turn after more and more student activists joined the protest, and continued even after key Dravida Munnetra Kazhagam (DMK) leaders were arrested.
    • More than 60 people died in police firing and other incidents as the protests went on for days.
    • The agitation died down later, but by then the Congress at the Centre realised the sensitivity of the language issue among Tamil-speaking people.
    • When the Official Language Rules were framed in 1976, it was made clear that the Rules apply to the whole of India, except Tamil Nadu.

    What is the three-language formula?

    • Since the 1960s, the Centre’s education policy documents speak of teaching three languages — Hindi, English and one regional language in Hindi-speaking States, and Hindi, English and the official regional language in other States.
    • In practice, however, only some States teach both their predominant language and Hindi, besides English.
    • In States where Hindi is the official language, a third language is rarely taught as a compulsory subject.
    • Tamil Nadu has been steadfastly opposing the three-language formula and sticks to teaching Tamil and English.
    • It argues that those who need to know Hindi can learn on their own.

     

     

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

  • Quasi-Federalism in India

    This newscard is an excerpt from the original article published in the TH.

    Why in news?

    • The contemporary discourse on federalism in India is moving on a discursive across multiple dimensions, be it economic, political and cultural,
    • It is argued that India is at an inflection point vis-a-vis Centre-State relations owing to increasing asymmetry.

    What is Federalism?

    • Federalism is a system of government in which the power is divided between a central authority and various constituent units of the country.
    • This vertical division of power among different levels of governments is referred to as federalism.
    • Federalism is one of the major forms of power-sharing in modem democracies.

    Indian case: Federal, quasi-federal or hybrid?

    • India consciously adopted a version of federalism that made the Union government and State governments interdependent on each other (latter more vis-a-vis the former).

    The federal features of the Constitution of India are:

    • Written Constitution: Features of the Indian Constitution is not only a written document but also the longest constitution in the world. Originally, it included a Preamble, 395 articles (22 parts), and 8 schedules.
    • Dual Polity: The constitution establishes a dual polity that includes the union at the periphery. Each is endowed with sovereign powers to be exercised in the field assigned to them respectively by the Constitution.
    • Bicameralism: The constitution provides for a bicameral legislature in which an upper house (Rajya Sabha) and a lower house (Lok Sabha). Rajya Sabha represents the states of the Indian Union, whereas The Lok Sabha represents the people of India as a whole.
    • Division of Powers: The Constitution divided the powers between the Center and the states in terms of the Union List, State List, and Concurrent List in the Seventh Schedule.
    • Supremacy of the Constitution: The Constitution is the supreme law of the country. The laws made by the Center and the states should be in conformity with Provision. Otherwise, they may be declared invalid by the Supreme or High Court through its power of judicial review.
    • Rigid Constitution: The division of powers established by the Constitution as well as supremacy of the constitution can be maintained only if the method of its amendment is rigid. It is necessary for both houses to agree to amend the constitution.
    • Independent judiciary: The constitution establishes an independent judiciary headed by the Supreme Court for two purposes: one, to protect the supremacy of the constitution, and two, to settle the disputes between the Centre and states or between the states.

    Besides the above federal features, the Indian constitution also possesses the following unitary features:

    • Strong Centre: The division of powers is in favour of the centre and unequal from a federal point of view. Firstly, the Union list contains more subjects than the state list, secondly, the more important subjects have been included in the union list and the Centre has overriding authority over the concurrent list.
    • Single constitution: The constitution of India embodies not only the constitution of the Centre but also those of the states. Both the Centre and the States must operate within this single frame.
    • Destructible nature of states: Unlike in other federations, the states in India have no right to territorial integrity. The parliament can change the area, boundaries, or name of any state.
    • Emergency provisions: The emergency provisions are contained in Part XVIII of the Constitution of India, from Articles 352 to 360. In the emergency provisions, the central government becomes all-powerful and the states go into total control of the Centre.
    • Single citizenship: Single citizenship means one person is the citizenship of the whole country. The constitution deals with citizenship from Articles 5 and 11 under Part 2.
    • All India services: In India, there are all India services (IAS, IPS and IFS) which are common to both the Centre and the states. These services violate the principle of federalism under the constitution.
    • Appointment of governor: The governor is appointed by the president. He also acts as an agent of the Centre. Through him, the Centre exercises control over the states.
    • Integrated election machinery: The election commission conducts elections for central and state legislatures. But the Election commission is constituted by the president and the states have no say in this matter.
    • Equality (= Equity) of representation: The states are given representation in the upper house on the basis of population. Hence, the membership varies from 1 to 31.
    • Integrated Judiciary: The term Integrated Judiciary refers to the fact that rulings made by higher courts bind lower courts. The Supreme Court of India incorporates all lower courts, from the Gram Panchayat to the High Courts. The Supreme Court is at the very top.
    • Union veto over State Bills:  The governor has the authority to hold certain sorts of laws passed by the state legislature for presidential consideration. The President has the authority to refuse to sign such bills not only in the first instance but also in the second.

    Reasons for a centralised federal structure

    There are at following reasons that informed India’s choice of a centralised federal structure.

    1. Partition of India and the concomitant concerns: The 1946 Objectives Resolution introduced by Nehru in the Assembly were inclined towards a decentralised federal structure wherein States would wield residuary powers.
    2. Reconstitution of social relations in a highly hierarchical and discriminatory society: The centralised structure would unsettle prevalent trends of social dominance, help fight poverty better and therefore yield liberating outcomes.
    3. Building of a welfare state: In a decentralised federal setup, redistributive policies could be structurally thwarted by organised (small and dominant) groups. Instead, a centralised federal set-up can prevent such issues and further a universal rights-based system.
    4. Alleviation of inter-regional economic inequality: Provincial interventions seemed to exacerbate inequalities. India’s membership in the International Labour Organization, the Nehru Report (1928), and the Bombay Plan (1944) pushed for a centralised system to foster socio-economic rights and safeguards for the working and entrepreneurial classes.
    5. Linguistic reorganization: It would not have been possible if India followed a rigid or conventional federal system. In other words, the current form of federalism in the Indian context is largely a function of the intent of the government of the day and the objectives it seeks to achieve.
    • From the above, it is clear that India has deviated from the traditional federal systems like the USA   and incorporated a large number of unitary features, tilting the balance of power in favor of the Centre.
    • Hence K C Wheare described the constitution of India as “quasi-federal”.

    Conclusion

    • The majoritarian tendencies sometimes are subverting the unique and indigenised set-up into an asymmetrical one.
    • Inter alia, delayed disbursal of resources and tax proceeds, bias towards electorally unfavourable States, evasion of accountability, imposition of language, weakening institutions, proliferation of political ideologies all signal towards the diminishing of India’s plurality or regionalisation of the nation.
    • While it would be safe to argue that our federal set-up is a conscious choice, its furthering or undoing, will depend on the collective will of the citizenry and the representatives they vote to power.

     

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

  • What is Office-of-Profit?

    The Election Commission (EC) has sent a notice to Jharkhand CM over an office-of-profit charge against him for allotment of a mining lease in his name last year.

    Why in news?

    • Under Section 9A of the Representation of the People Act, 1951, the CM could face disqualification for entering into a government contract.
    • The Constitution of India does not define the Office of Profit. It has only mentioned it under Article 102 (1) and Article 191 (1).

    What is ‘Office of Profit’?

    • MPs and MLAs, as members of the legislature, hold the government accountable for its work.
    • The essence of disqualification is if legislators hold an ‘office of profit’ under the government, they might be susceptible to government influence, and may not discharge their constitutional mandate fairly.
    • The intent is that there should be no conflict between the duties and interests of an elected member.
    • Hence, the office of profit law simply seeks to enforce a basic feature of the Constitution- the principle of separation of power between the legislature and the executive.

    What governs the term?

    • At present, the Parliament (Prevention of Disqualification) Act, 1959, bars an MP, MLA or an MLC from holding any office of profit under the central or state government unless it is exempted.
    • However, it does not clearly define what constitutes an office of profit.
    • Legislators can face disqualification for holding such positions, which bring them financial or other benefits.
    • Under the provisions of Article 102 (1) and Article 191 (1) of the Constitution, an MP or an MLA (or an MLC) is barred from holding any office of profit under the Central or State government.

    An undefined term

    • The officials of the law ministry are of the view that defining an office of profit could lead to the filing of a number of cases with the Election Commission and the courts.
    • Also, once the definition is changed, one will also have to amend various provisions in the Constitution including Article 102 (1) (a) and Article 109 (1) (a) that deal with the office of profit.
    • It will have an overarching effect on all the other sections of the Constitution.

    Factors constituting an ‘office of profit’

    • The 1959 law does not clearly define what constitutes an office of profit but the definition has evolved over the years with interpretations made in various court judgments.
    • An office of profit has been interpreted to be a position that brings to the office-holder some financial gain, or advantage, or benefit. The amount of such profit is immaterial.
    • In 1964, the Supreme Court ruled that the test for determining whether a person holds an office of profit is the test of appointment.

    What is the ‘test of appointment’?

    Several factors are considered in this determination including factors such as:

    1. whether the government is the appointing authority,
    2. whether the government has the power to terminate the appointment,
    3. whether the government determines the remuneration,
    4. what is the source of remuneration, and
    5. the power that comes with the position.

     

     

  • No one can be forced to get vaccinated: SC

    The Supreme Court has upheld the right of an individual against forcible vaccination and the government’s COVID-19 vaccination policy to protect communitarian health.

    What is the news?

    • Vaccine hesitancy has been on rise these days.
    • The SC has found certain vaccine mandates imposed by the State governments and Union Territory administrations disproportionate.
    • They tend to deny access to basic welfare measures and freedom of movement to unvaccinated individuals.

    Right not to get vaccinated

    • The bench upheld the right to bodily integrity and personal autonomy of an individual in the light of vaccines and other public health measures.
    • Bodily integrity is protected under Article 21 (right to life) of the Constitution and no individual can be forced to be vaccinated.
    • The court struck a balance between individual right to bodily integrity and refuse treatment with the government’s concern for public health.

    Subject to scrutiny

    • When the issue is extended to “communitarian health”, the government was indeed “entitled to regulate issues”.
    • But its right to regulate by imposing limits to individual rights was open to judicial scrutiny.

    What is Vaccine Hesitancy?

    • The reluctance of people to receive safe and recommended available vaccines is known as ‘vaccine hesitancy’.
    • This was already a growing concern before the COVID-19 pandemic.
    • A framework developed from research done in high-income countries, called ‘the 5C model of the drivers of vaccine hesitancy’, provides five main individual person–level determinants for vaccine hesitancy:
    1. Confidence
    2. Complacency
    3. Convenience (or constraints)
    4. Risk calculation
    5. Collective responsibility

    Questions raised by vaccine hesitancy

    1. To end the pandemic, wherein no one is safe until everyone is safe, how relevant and strong are the arguments on freedom of choice?
    2. How is the fight against this global crisis impacted when prominent personalities assert on making a choice contrary to global good?
    3. Amid the raging pandemic and the persistent threat of future waves, how can vaccine scepticism and hesitancy be addressed worldwide?

    Why is it a cause of concern?

    • Re-surging of covid cases: Amid the ongoing Omicron surge, there have been reports pointing to the unvaccinated population driving the current surge in COVID-19 cases in Europe and US.
    • Risk of future waves and danger mutations: Large scale vaccine hesitancy could drag the pandemic longer by ensuring sustained continuance of the COVID-19 diseases and emergence of newer and deadlier variants.

    Various causes for vaccine hesitancy

    • Scepticism: There are many reasons for vaccine scepticism. Vaccine hesitancy is complex and context specific varying across time, place and vaccines.
    • Fake news: The conspiracy theories on social media have brought negative publicity for vaccination. These seem to have created propaganda against the vaccines.
    • Malfunctions: The sensational highlighting of vaccine fatalities event by the media is driving vaccine hesitancy to some extent.
    • Myths and beliefs: In some places radical religious factors have driven vaccine hesitancy resulting in myth against vaccines. This is also a leading factor of prevalence of Polio in Pakistan and Afghanistan.
    • Policy fluctuations: The frequent flip-flops by governments on the vaccination issue have resulted in a low trust among the general populace regarding vaccination.
    • Public trust: Vaccine hesitancy is also influenced by factors such as complacency, convenience and confidence.

    Way forward

    With no “one-size-fits-all” solution to vaccine hesitancy, contextualised and curated approaches are crucial.

    • Dispelling misinformation: There is the need to dispel all misinformation – unscientific, incorrect and unsubstantiated.
    • Counselling: WHO has put forth the BeSD (behavioural and social drivers) vaccination model, which emphasises “motivation” as the vanguard of human psychology during a vaccination drive.
    • Standard safeguards: The fact that vaccines meet the necessary safety standards set by the various organizations needs to be highlighted.
    • Vaccine equality: There is the need to ensure access of affordable, quality and timely vaccines to all.
    • Highlighting success: Countries must highlight the success observed due to the vaccination programmes, wherein despite rapid rise in cases the hospitalization and death rates remain within controllable limits.

     

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

  • [pib] National Open Access Registry (NOAR)

    National Open Access Registry (NOAR) has successfully gone live from 1st May 2022.

    What is NOAR?

    • NOAR is a centralized online platform through which the short-term open access to the inter-state transmission system is being managed in India.
    • It is an integrated platform accessible to all stakeholders in the power sector, including open access customers (both sellers and buyers), power traders, power exchanges, National/Regional/State LDCs and others.
    • The platform provides automation in the workflow to achieve shorter turnaround time for the transactions.
    • NOAR platform also has a payment gateway integrated for making payments related to interstate short-term open access transactions.
    • NOAR platform provides transparency and seamless flow of information among stakeholders of open access.

    Key features

    • Centralized System: Single point electronic platform for all the stakeholders
    • Automated Process: Automated administration process of the short-term open access
    • Common Interface: Interface with the RLDCs scheduling applications and Power Exchanges (s)
    • Payment Gateway: Make payments related to STOA transactions

     

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

  • LIC

    Context

    LIC is now at a transformational moment. Its listing on the bourses should lift LIC to be a part of the elite corporate community in India.

    Insurance sector in India

    • Opening of the insurance sector: A milestone in the history of India’s insurance industry was the opening of the sector for private participation in the year 2000 and this caused widespread concern that LIC will find the competition tough and could very well be marginalised.
    • Today, there are 24 private players in the life insurance space and many of them have foreign collaborations.
    • LIC has steadily grown in the past six decades and today with over 290 million policyholders and an asset value of ₹38 lakh crore ($520 billion), it ranks as one of the largest insurance companies in the world.
    • Yet, LIC remains a colossus capturing 75% of the life insurance business in the country.
    • Its claim settlement at 99.87% is far above the industry average of 84%.

    Role of LIC in skilling and women’s employment

    • LIC created large scale employment for women right from its inception in 1956. 
    • Thousands of women became LIC agents in the 1950s and 60s, when job opportunities were scarce.
    • There was no entry barrier in terms of age or fixed time for work.
    • Education requirement was a mere high school pass.
    • Many of these women were housewives who could earn an extra income by selling LIC policies.
    • This was a period before the arrival of digital technologies and mobile phones.
    • Skill development program: LIC’s training programme with its mix of online education and real-life case studies offer the best model for India’s skill development programmes.
    •  LIC’s relevance comes from its track record of creating vast number of employment opportunities for ordinary Indians, male and female, urban and rural.

    Policies focused on savings

    • In a country of vast poverty and low income, LIC recognised from the beginning that it cannot sell insurance as a risk cover on premature death.
    • It, therefore, devised policies focussing on savings and the need for children’s education and daughter’s marriage which are fundamentals to family values in India.
    • These policies also ensured that a part of the premium paid was returned at regular intervals before the maturity period, providing liquidity for emergencies.
    • They simultaneously covered risk caused by death.
    • People-centric approach: While the private players concentrated on technology-driven marketing, LIC’s approach was significantly people-centric.
    • When Pradhan Mantri Jan Dhan Yojana was launched for financial inclusion of over 300 million of the rural population on August 15, 2014, LIC was already there with its policies covering a rural population of 200 million.

    Conclusion

    The nation must not forget the fact that LIC was built on sweat and tears, pain and sacrifice of ordinary Indians. It is these democratic credentials that remain LIC’s most valuable asset.

    UPSC 2023 countdown has begun! Get your personal guidance plan now! (Click here)

More posts